SAP Strikes Deal for Sybase

SAP AG said it would pay $5.8 billion to buy fellow software maker Sybase Inc., a move that would give the German giant key technology in its battle against archrival Oracle Corp. in the business-software market.

SAP said it will pay $65 for each Sybase share—a 56% premium to Tuesday's closing price. SAP said it will pay cash, using its own reserves and a $3.5 billion loan. It expects the deal to close in the third quarter.